Can someone with some real aviation law knowledge explain to me how a state government can legislate aviation routes within their state given that the Australian constitution specifically says that aviation regulation is under the sole authority of the federal government.
Giving a monopoly "licence" to one operator I believe is not legally defendable.
The Minister for Transport has powers under the Transport Coordination Act 1966 to license aircraft and place conditions on aircraft licenses to control where and when airlines may fly within the State.
Under the Western Australian Transport Coordination Act 1966 and the Transport Coordination Regulations 1985 the Minister for Transport has the authority to issue aircraft licences for up to 12 months, free of charge, to airlines operating within the State for commercial purposes (hire or reward), other than for medical emergency purposes.
The purpose of the Act and Regulations is to ensure that Western Australians are provided, as far as is practicable, with reliable, efficient and economic transport services. Under this legislation the Minister is empowered to regulate intrastate air routes by placing various conditions on aircraft licences.
These can include conditions that restrict the area or frequency of airline operations or any other conditions considered in the public interest. Any condition placed on an aircraft licence may refer to the provision of RPT services, charter services, or both where applicable.